Imagine someone saying, “I bought a new home!”
You imagined a man, didn’t you?

The real estate sector in India has been dominated by men for decades, but times have changed. Today, women are almost on par with men in real estate. Currently, 66% of Indian women, according to a recent survey, prefer real estate as an investment. Even before the pandemic, the numbers were on the rise, thanks to woman empowerment and growing awareness of the goldmine that is property investment.

While it’s refreshing to see women take the lead, it is even more delightful that there are multiple benefits for women buying a property in Bangalore. Besides love and trust, we believe these benefits are a major reason why husbands prefer buying homes in their wife’s name. Let’s close a closer look at this.

Advantages for women property owners in India

You will be happy to know that the government and banks together encourage women property buyers by showering benefits such as the following:

Loan eligibility

Getting a larger amount as a loan from banks is easier for women. Loan eligibility is usually evaluated based on one’s salary, but if a couple plans on co-owning a property, both wages are taken into account and the eligibility automatically increases.

Pradhan Mantri Awas Yojana (PMAY)

The PMAY scheme has been drafted to help women own property with the utmost ease in India. According to the rules of the scheme, there must be at least 1 woman owner of the said property and subsidies up to INR 2.67 lakh are granted.

Also, through PMAY, the central government is working towards the upliftment of the Economically Weaker Sections (EWS) of the society and the Lower Income Group (LIG) by allowing a 6.5% interest subsidy to women of these sections. Any woman can avail PMAY regardless of her marital status.

Since the launch of this scheme, the number of women property buyers in the country has seen a significant rise.

Lower interest rates on home loans

Women have the support of popular banks such as HDFC and SBI. Interest rates for them are slightly lower than they are for men. On average, women have a 50 to 100 basis point advantage where 100 basis points = 1 percentage point.

Example: SBI charges 6.8% interest to women and 7% to men.

In the long run, one may argue that the difference is not very much but in the growing real estate market, any discount or relief is welcome.

Tax benefits

This is one of the biggest benefits of buying a home in the wife’s name. While the tax deductions are similar for men and women, joint ownership allows you to claim tax deductions separately. Under Section 80C, you can claim an additional INR 1.5 lakh apart from INR 2 lakh on the interest paid.

A first-time woman home buyer can claim INR 50,000 on the principal to be paid over and above the other claims under Section 80EE.

Lower stamp duty

Maharashtra, Himachal Pradesh, and Uttar Pradesh are among the many states that are actively helping women homebuyers by reducing stamp duty. In Himachal Pradesh and Delhi, there’s a difference of 2 percentage points (6% for men and 4% for women). In Jharkhand, women only have to pay INR 1 for stamp duty.

In Karnataka and Tamil Nadu, the percentages are the same for men and women but in 2021, the Karnataka authorities announced a reduction in the fees. Today, it is 2% for properties up to INR 20 lakh and 3% for those between 35 and 45 lakhs.

Conclusion

The real estate sector is booming at the moment, and it is inspiring to see so many women taking the lead. Also, since there are many benefits for a woman home buyer in India, there is no reason why anyone should hold back!

For more details about properties in Bangalore, get in touch with the experts at Address Maker today!